EU-SOUTH KOREA F.T.A.

Transcription

1 EU-SOUTH KOREA F.T.A. Rheinische Friedrich-Wilhelms-Universität Bonn Institut für Orient- und Asienwissenschaften Korean Economic Development History Sollinde Röhring, Christina Smouli, Max Hinze, Sascha Kleiber, Isabell Becker-Ebert

2 Outline I. Background to EU-South Korea Economic Relations II. Free Trade Agreement III. Facts & Statistics IV. Impact V. Brexit

3 Background FTA between EU and South Korea is 3 rd trade related agreement 1 st agreement (13/5/97) on co-operation and mutual administration assistance in custom matters à allows sharing of competition policies 2 nd agreement, Framework Agreement on Trade and Co- Operation (1/4/2001) à increase of co-operation in several key industries (e.g. transport, energy, science & technology)

4 Background First Free-Trade-Agreement of the next generation à addresses trade concerns beyond tariff related matters à most significant are non-tariff barriers Negotiations between EU and South Korea started in May 2007 Opposition by France and Italy ( The FTA harms our automaker industry! ) à Veto by Italy in 2010 Eventually all EU members approve on the agreement before its provisional implementation on 1/7/2011

5 Free Trade Agreement EU-South Korea Free Trade Agreement was signed in July 2011 FTA addresses non-tariff barriers to trade Focus: automotive, pharmaceuticals, medical devices, electronics Large number of specialised committees & working groups established Goal: Monitoring implementation of FTA

6 Free Trade Agreement Annual Trade Committee at ministerial level plays supervisory role Every two months: Commission presents report to EU member states Every year: Commission presents monitoring report to the Council

7 Facts & Statistics South Korea is EU s 8 th largest export destination EU is South Korea s 4 th largest export destination

8 Facts & Statistics

9 Facts & Statistics Outward Stocks: FDI in foreign companies with branches in South Korea Inward Stocks: FDI in South Korean companies within South Korea

10 Impact Tariff elimination for EU exports FTA relieves EU exporters from paying tariffs on industrial and agricultural goods à Exporters save up to 1.6 billion Euros annually Sectors who benefit the most: machinery, chemical and agriculture FTA is expected to more than double EU-SK trade Strong competitive rules Prohibition of practices involving goods which distort competition à Cartels not tolerated

11 Impact Commitment to sustainable development Framework for cooperation on trade and sustainable development Protection of intellectual property rights Covering provisions on copyright, designs, enforcement and geographical indications

12 Brexit South Korean market instable due to Brexit But: increase in FDI in Korean bond market Planned structural reforms to counter negative Brexit effects Stimulus package: Domestic consumption Job market Development of new industries & more start-up businesses Less regulations on new companies

13 Brexit UK is not out of EU yet still included in FTA UK leaving EU à taxes restored on import and export South Korean government already preparing new agreement Bilateral Free Trade Agreement Negotiations to take years

14 Sources /43fb8136-3cf3-11e6-93e1-426e2e7bb8ad.html#axzz4D5Bc7Ifp